The market for RECLAIM Trading Credits has tightened over the past year, with recent prices for nitrogen oxide credits rising sharply.

AQMD’s Regional Clean Air Incentives Market program requires major facilities in the region to reduce their nitrogen oxide emissions by about 70% over the ten-year period from 1994 through 2003.

AQMD anticipated that the price of RTC’s would rise as emissions allocations decreased and began to more closely mirror actual facility emissions levels. The recent price increases reflect tightening emissions caps. Large purchases of credits by electric generators -- operating near full capacity this summer – also have contributed to price increases.

RECLAIM facilities continue to have the option to cover any excess emissions above their caps by purchasing credits. Their other option is to reduce emissions below their caps. Many cost-effective nitrogen oxide controls have not yet been installed at RECLAIM facilities. These options, costing $1,000 to $8,000 per ton of nitrogen oxides reduced, are now more economical for many firms than purchasing credits.

Since variances from RECLAIM emissions caps are prohibited by state law, facilities that exceed their RECLAIM emissions caps will have to cover excess emissions with credits or be found in violation of their facility permit requirements and air quality regulations. Firms found in violation will face penalties and may be placed under abatement orders that require them to install control equipment and mitigate excess emissions.

To discuss options for compliance with the RECLAIM program contact Carol Coy at 909-396-2434.

AQMD Home Page
This page updated: March 01, 2004
URL: http://www.aqmd.gov/news1/RECLAIM_market.htm